Conventional Loans

Waterstone Mortgage Conventional Loans

Conventional loans are often referred to as “conforming loans,” because they meet the guidelines set by Freddie Mac and Fannie Mae. The most notable guideline is that the maximum loan amount is $484,350 (except in high-cost areas where higher limits may be available).

What Are the Advantages of Conventional Financing?

There are several benefits of conventional financing, including:

  • You can buy a primary residence, second home, or rental property with most conventional loans
  • You have the choice of fixed rates, adjustable rates (ARMs), and loan-term options from 10-30 years
  • Down payments are as low as 3% with our traditional conventional options
  • No down payment with our Community Experts loan program
  • 1% down payment with our Community Heroes loan program
  • You pay no monthly mortgage insurance with a down payment of 20% or more (with the exception of our Smart Select program, which only requires a 3% down payment but has no MI or Select Smart Plus, which requries no down payment but has no MI*)
  • Mortgage insurance costs less than with government loans and may be cancelled when your home equity reaches 20%

Did you know? More than half of all mortgage loans are conventional loans. Freddie Mac and Fannie Mae are the two largest investors.

Are Conventional Loans for First-Time Homebuyers?

If you’re a first-time homebuyer and are struggling to save up for a large down payment on a home, our 3% down payment conventional loan programs may be just what you need - although you don't have to be a first-time homebuyer to enjoy these loan programs. Conventional loans are considered a great alternative and are often more affordable than FHA loans. With a conventional loan program, you can:

  • Finance up to 97% of the home’s value – or even more with loan options like our Community Heroes and Community Experts programs
  • Use gift funds for your down payment
  • Choose our Select Smart loan program with no MI; or get lower a lower MI rate if you attend home counseling and meet specific income limits using our HomeReady® or Home Possible® loan programs

Learn More about the Conventional Loan Application Process

To compare home loans and find the perfect one for your needs, contact a Waterstone Mortgage loan originator in your area!

*Geographical restrictions apply.

All loan requests are subject to credit approval as well as specific loan program requirements and guidelines. With Adjustable Rate Mortgage loans, the rate is variable and may increase or decrease every year after the initial fixed rate period based on changes to an index. This could result in an increase in the monthly payment.